Rising in the West, falling in the East

The mood in financial markets has remained upbeat over the past few days partly thanks to some stronger-than-expected US earnings reports. Last week’s weaker-than-expected inflation data have also continued to lift hopes that a hard landing scenario can be avoided. As we illustrate in our charts this week, however, the incoming data from elsewhere has not been as auspicious. More specifically this week we focus on

• US data surprises and equity markets
• China’s cyclical and structural challenges
• Still-high UK service sector inflation
• Ebbing wage growth in the US and Europe
• Some evidence for re-globalisation
• Refugee flows in high income economies